The daily price in dollars per metric ton of cocoa in 2007 was normally distributed with µ = $2,014 per metric ton and σ = $2.00. Find a price such that the probability that the actual price will be above it is 0.80.
In the following problems, use a normal distribution to compute the required probabilities. In each problem, also state the assumptions necessary for a binomial distribution, and indicate whether the assumptions are reasonable.